Glad you got it all fixed up! Sorry that it took some back tracking.

There shouldn't be oil in the encoder motor electrical connection. There shouldn't be any oil or ATF anywhere near the encoder motor. Does it look like oil or ATF?

 

It looks like oil, has a definate brown tint. I found some ATF in my vac lines so my tcase switch must also be bad.

My hypothesis is ATF could be leaking out of the switch or a vac hose and then comming down the wires. Probably turns brown with all the grime . The whole t case is kinda grimy so its hard to tell until i degrease it.

Any idea on how many feet of vac line i need to replace the lines? I was thinkin about 20 feet.

 

20' should be more than enough.

Pull the fill plug on the back of the transfer case, if fluid pours out, the input seal on your transfer case is bad and needs to be replaced. ATF in the vacuum lines is often caused by both a bad input seal on the front of the transfer case and a leaking vacuum switch.

I would spray the connection down with some electrical contact cleaner and blow it out with some air (or co2 if you don't have shop air). See if the oil in the connector issue persists.

 

I have pulled the plug before and fluid poured out. I just figured that meant it was full. That explains why my vac line from the t switch to engine looked cut when i bought it. The guy must have done it to stop the fluid from being sucked out. I noticed the tranny fluid seemed like it was going lower and lower lately.

Thanks for the saving me lots of problems. I would have never suspected i had a problem. Just when i thought i had fixed it all. lol

 

Well bad news 4wd is dead again. This time the problem is when i hit 4hi or 4lo it blinks and TCCM clicks for about 20 seconds then goes back to 2wd. The encoder does nothing. I have another encoder (used from junk yard) that does the same thing. It seems like the encoder is not getting power. Fuse is good, and using a different TCCM (used from junk yard) does the same thing. Right before it stopped working it got stuck in 4hi and eventually had a rough shift back to 2 hi.

Every wire except 1 i think had 5 volts, and all had continuity on the encoder. I followed the wiring diagrams and everything has power going into the tccm. Termical C4 has 9.4volts and 13.5 when buttons are pressed. C5 has 12.8 volts. Doesn't make any sense what is wrong. Any ideas what the issue is?